GRANITE CONSTRUCTION INC (GVA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GVA - US3873281071 - Common Stock
108.08 USD
-0.23 (-0.21%)
108.08 USD
0 (0%)
Taking everything into account, GVA scores 6 out of 10 in our fundamental rating. GVA was compared to 55 industry peers in the Construction & Engineering industry. Both the profitability and the financial health of GVA get a neutral evaluation. Nothing too spectacular is happening here. GVA is growing strongly while it also seems undervalued. This is an interesting combination These ratings would make GVA suitable for value and growth investing!
1. Profitability
1.1 Basic Checks
GVA had positive earnings in the past year.
GVA had a positive operating cash flow in the past year.
Of the past 5 years GVA 4 years were profitable.
GVA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
GVA has a Return On Assets (4.40%) which is comparable to the rest of the industry.
GVA has a better Return On Equity (15.79%) than 63.64% of its industry peers.
GVA has a Return On Invested Capital (6.20%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for GVA is significantly below the industry average of 17.30%.
The 3 year average ROIC (3.67%) for GVA is below the current ROIC(6.20%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.4% | ||
| ROE | 15.79% | ||
| ROIC | 6.2% |
ROA(3y)3.19%
ROA(5y)0.78%
ROE(3y)8.55%
ROE(5y)2.36%
ROIC(3y)3.67%
ROIC(5y)N/A
1.3 Margins
GVA has a better Profit Margin (4.31%) than 61.82% of its industry peers.
In the last couple of years the Profit Margin of GVA has grown nicely.
GVA has a Operating Margin (6.08%) which is in line with its industry peers.
GVA's Gross Margin of 16.39% is in line compared to the rest of the industry. GVA outperforms 49.09% of its industry peers.
GVA's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.08% | ||
| PM (TTM) | 4.31% | ||
| GM | 16.39% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y121.93%
PM growth 5YN/A
GM growth 3Y11.34%
GM growth 5Y17.02%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so GVA is destroying value.
GVA has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, GVA has less shares outstanding
Compared to 1 year ago, GVA has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.52 indicates that GVA is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of GVA (2.52) is comparable to the rest of the industry.
The Debt to FCF ratio of GVA is 3.86, which is a good value as it means it would take GVA, 3.86 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 3.86, GVA is doing good in the industry, outperforming 67.27% of the companies in the same industry.
GVA has a Debt/Equity ratio of 0.84. This is a neutral value indicating GVA is somewhat dependend on debt financing.
GVA has a Debt to Equity ratio (0.84) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | 3.86 | ||
| Altman-Z | 2.52 |
ROIC/WACC0.67
WACC9.27%
2.3 Liquidity
GVA has a Current Ratio of 1.21. This is a normal value and indicates that GVA is financially healthy and should not expect problems in meeting its short term obligations.
GVA has a Current ratio (1.21) which is in line with its industry peers.
GVA has a Quick Ratio of 1.12. This is a normal value and indicates that GVA is financially healthy and should not expect problems in meeting its short term obligations.
GVA has a worse Quick ratio (1.12) than 61.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 61.71% over the past year.
Measured over the past years, GVA shows a very strong growth in Earnings Per Share. The EPS has been growing by 32.75% on average per year.
Looking at the last year, GVA shows a small growth in Revenue. The Revenue has grown by 6.87% in the last year.
The Revenue has been growing slightly by 6.57% on average over the past years.
EPS 1Y (TTM)61.71%
EPS 3Y125.25%
EPS 5Y32.75%
EPS Q2Q%31.71%
Revenue 1Y (TTM)6.87%
Revenue growth 3Y4.6%
Revenue growth 5Y6.57%
Sales Q2Q%12.39%
3.2 Future
The Earnings Per Share is expected to grow by 21.70% on average over the next years. This is a very strong growth
Based on estimates for the next years, GVA will show a quite strong growth in Revenue. The Revenue will grow by 9.43% on average per year.
EPS Next Y38.6%
EPS Next 2Y26%
EPS Next 3Y21.7%
EPS Next 5YN/A
Revenue Next Year11.61%
Revenue Next 2Y10.53%
Revenue Next 3Y9.43%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 18.41, the valuation of GVA can be described as rather expensive.
Based on the Price/Earnings ratio, GVA is valued cheaply inside the industry as 87.27% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.46. GVA is valued slightly cheaper when compared to this.
GVA is valuated correctly with a Price/Forward Earnings ratio of 16.85.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GVA indicates a rather cheap valuation: GVA is cheaper than 89.09% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.10. GVA is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.41 | ||
| Fwd PE | 16.85 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GVA indicates a rather cheap valuation: GVA is cheaper than 83.64% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of GVA indicates a rather cheap valuation: GVA is cheaper than 87.27% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.62 | ||
| EV/EBITDA | 12.6 |
4.3 Compensation for Growth
GVA's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
GVA has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as GVA's earnings are expected to grow with 21.70% in the coming years.
PEG (NY)0.48
PEG (5Y)0.56
EPS Next 2Y26%
EPS Next 3Y21.7%
5. Dividend
5.1 Amount
With a yearly dividend of 0.48%, GVA is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.65, GVA pays a better dividend. On top of this GVA pays more dividend than 87.27% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, GVA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.48% |
5.2 History
The dividend of GVA decreases each year by -0.19%.
GVA has been paying a dividend for at least 10 years, so it has a reliable track record.
GVA has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-0.19%
Div Incr Years0
Div Non Decr Years33
5.3 Sustainability
12.45% of the earnings are spent on dividend by GVA. This is a low number and sustainable payout ratio.
DP12.45%
EPS Next 2Y26%
EPS Next 3Y21.7%
108.08
-0.23 (-0.21%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners119.35%
Inst Owner Change3.24%
Ins Owners1.09%
Ins Owner Change-0.65%
Market Cap4.72B
Revenue(TTM)4.24B
Net Income(TTM)182.46M
Analysts80
Price Target132.8 (22.87%)
Short Float %10.32%
Short Ratio6.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.48% |
Yearly Dividend0.52
Dividend Growth(5Y)-0.19%
DP12.45%
Div Incr Years0
Div Non Decr Years33
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.76%
Min EPS beat(2)6.79%
Max EPS beat(2)12.74%
EPS beat(4)3
Avg EPS beat(4)29.36%
Min EPS beat(4)-4.36%
Max EPS beat(4)102.29%
EPS beat(8)4
Avg EPS beat(8)12.62%
EPS beat(12)7
Avg EPS beat(12)-128.57%
EPS beat(16)8
Avg EPS beat(16)-113.13%
Revenue beat(2)0
Avg Revenue beat(2)-3.91%
Min Revenue beat(2)-4.31%
Max Revenue beat(2)-3.52%
Revenue beat(4)1
Avg Revenue beat(4)-1.97%
Min Revenue beat(4)-4.31%
Max Revenue beat(4)1.87%
Revenue beat(8)3
Avg Revenue beat(8)0.82%
Revenue beat(12)5
Avg Revenue beat(12)-0.26%
Revenue beat(16)8
Avg Revenue beat(16)0.21%
PT rev (1m)4.77%
PT rev (3m)9.27%
EPS NQ rev (1m)-3.59%
EPS NQ rev (3m)-11.15%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.68%
Revenue NQ rev (1m)1.14%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.41 | ||
| Fwd PE | 16.85 | ||
| P/S | 1.11 | ||
| P/FCF | 13.62 | ||
| P/OCF | 10.2 | ||
| P/B | 4.08 | ||
| P/tB | 8.09 | ||
| EV/EBITDA | 12.6 |
EPS(TTM)5.87
EY5.43%
EPS(NY)6.41
Fwd EY5.93%
FCF(TTM)7.94
FCFY7.34%
OCF(TTM)10.59
OCFY9.8%
SpS97.05
BVpS26.48
TBVpS13.36
PEG (NY)0.48
PEG (5Y)0.56
Graham Number59.14
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.4% | ||
| ROE | 15.79% | ||
| ROCE | 10.25% | ||
| ROIC | 6.2% | ||
| ROICexc | 8.61% | ||
| ROICexgc | 12.6% | ||
| OM | 6.08% | ||
| PM (TTM) | 4.31% | ||
| GM | 16.39% | ||
| FCFM | 8.18% |
ROA(3y)3.19%
ROA(5y)0.78%
ROE(3y)8.55%
ROE(5y)2.36%
ROIC(3y)3.67%
ROIC(5y)N/A
ROICexc(3y)5.78%
ROICexc(5y)N/A
ROICexgc(3y)7.39%
ROICexgc(5y)N/A
ROCE(3y)6.06%
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y121.93%
PM growth 5YN/A
GM growth 3Y11.34%
GM growth 5Y17.02%
F-Score7
Asset Turnover1.02
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | 3.86 | ||
| Debt/EBITDA | 2.39 | ||
| Cap/Depr | 78.54% | ||
| Cap/Sales | 2.74% | ||
| Interest Coverage | 9.61 | ||
| Cash Conversion | 114.13% | ||
| Profit Quality | 189.88% | ||
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.12 | ||
| Altman-Z | 2.52 |
F-Score7
WACC9.27%
ROIC/WACC0.67
Cap/Depr(3y)135.78%
Cap/Depr(5y)115.36%
Cap/Sales(3y)3.7%
Cap/Sales(5y)3.28%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)61.71%
EPS 3Y125.25%
EPS 5Y32.75%
EPS Q2Q%31.71%
EPS Next Y38.6%
EPS Next 2Y26%
EPS Next 3Y21.7%
EPS Next 5YN/A
Revenue 1Y (TTM)6.87%
Revenue growth 3Y4.6%
Revenue growth 5Y6.57%
Sales Q2Q%12.39%
Revenue Next Year11.61%
Revenue Next 2Y10.53%
Revenue Next 3Y9.43%
Revenue Next 5YN/A
EBIT growth 1Y80.62%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year113.85%
EBIT Next 3Y40.86%
EBIT Next 5YN/A
FCF growth 1Y1319.85%
FCF growth 3YN/A
FCF growth 5Y133.59%
OCF growth 1Y342.92%
OCF growth 3Y175.18%
OCF growth 5Y32.58%
GRANITE CONSTRUCTION INC / GVA FAQ
What is the fundamental rating for GVA stock?
ChartMill assigns a fundamental rating of 6 / 10 to GVA.
What is the valuation status of GRANITE CONSTRUCTION INC (GVA) stock?
ChartMill assigns a valuation rating of 8 / 10 to GRANITE CONSTRUCTION INC (GVA). This can be considered as Undervalued.
Can you provide the profitability details for GRANITE CONSTRUCTION INC?
GRANITE CONSTRUCTION INC (GVA) has a profitability rating of 6 / 10.
Can you provide the PE and PB ratios for GVA stock?
The Price/Earnings (PE) ratio for GRANITE CONSTRUCTION INC (GVA) is 18.41 and the Price/Book (PB) ratio is 4.08.
Is the dividend of GRANITE CONSTRUCTION INC sustainable?
The dividend rating of GRANITE CONSTRUCTION INC (GVA) is 5 / 10 and the dividend payout ratio is 12.45%.